Finance
US President Donald Trump has indicated that the US is “very close” to a trade deal with India, and it may be wrapped up soon.
“We’re very close to a deal with India, where they open it up” to imports from the US, he said on Wednesday.
At another point in his interaction with reporters, he mentioned the trade deal announced on Tuesday with Indonesia and said, “We have another one coming up, maybe with India. I don’t know. We’re in negotiation.”
The Indian negotiating delegation, led by Rajesh Agrawal, special secretary in the Commerce Department, arrived in Washington on Monday and is in talks with US authorities to finalize a deal.
According to Politico, the planned announcement “is expected to be only the first phase of a trade deal, with a more robust and comprehensive agreement to come in the fall.”
This would be a more extensive bilateral trade pact.
Trump talked to reporters with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa before their meeting, which will include discussions on trade and investments, he said.
He has been looking for international investments in the United States and boasts of the trillions he is bringing in.
Al Khalita said, “We’re very happy to be announcing $17 billion worth of deals that are coming to the United States.”
Trump has not sent India the tariff notice that was sent to numerous countries, triggering penalties of up to 35% on pure trade considerations if a deal is not reached by August 1.
That could indicate that he expects an India deal shortly.
On Tuesday, Trump stated that India is working on a trade pact similar to the one signed with Indonesia.
According to him, under the Indonesia pact, Jakarta will not levy tariffs on US imports, while the US will charge a 19% duty on Indonesian exports.
Talks with India began as early as February, and Trump and US officials have repeatedly stated that a trade agreement was forthcoming, but it has yet to materialize.
Following Vice President JD Vance’s travel to India in April, US Commerce Secretary Scott Bessent stated that India would be among the first to sign a trade agreement, which might happen in early May.
In June, after a call with Prime Minister Narendra Modi, Trump said, “I think Modi is a fantastic man. I spoke to him last night. We’re going to make a trade deal with Modi of India.”
About the possibility of an early trade deal, Bessent had said that India has “fewer non-tariff trade barriers, obviously, no currency manipulation, very, very little government subsidies, so that reaching a deal with the Indians is much easier.”
However, problems such as agriculture, Indian experts’ access to the US, and intellectual property appear to have hindered the discussions.
Two more developments are throwing doubt on a trade pact.
Trump has stated that if Moscow does not reach an agreement with Ukraine by early September, he will slap a 100% secondary tax on countries that import Russian energy.
Even while it is intended to limit Russia’s financial pipeline and increase pressure on it to reach a peace agreement, the punitive tax would also affect India.
At the same time, Obama has persuaded Republican senators to drop a bill that would put a 500 percent tariff on Russian energy imports.
Another issue is a ten per cent tariff Trump has threatened on members of the BRICS that he called “anti-American.”
Source: IANS
